San Miguel Beer Case Study

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Growth Strategies Case Study


Case Title:

San Miguel: The Philippines Brewery Giant's Growth Strategies

Publication Year : 2005

Authors: Sireesha M, Sumit Kumar Chaudhuri

Industry: Beverages

Region:Philippines

Case Code: GRS0056

Teaching Note: Not Available

Structured Assignment: Not Available


OR



By 2005, San Miguel Corporation, a Philippines' based beverages and food products manufacturer, is one of the top 20 brewers in the world. It has its operations in 40 countries with manufacturing facilities across Asia. By leveraging its strong domestic market presence, the company plans to be among the top ten beverage and food products companies in Asia.

  • To highlight Breweries industry in Philippines
  • To discuss the inorganic growth strategies of San Miguel in its domestic as well as the Asian market.

Beverages and food products market; Product diversification; Expansion into South East Asian Market; Joint venture with Coca-Cola; Joint venture with Nestl�; Acquisition of domestic companies; Growth Strategies Case Study; Outsourcing of non-core activities; Acquisition of global manufacturing plants; Emerging markets of Asia; Consumption trends in Asia.


San Miguel: A Corporate Icon from the Philippines
Growth Strategies
Timeline of San Miguel Corporation
Financial Highlights of San Miguel Corporation
Businesses of San Miguel Corporation
San Miguel Pure Foods Company, Inc

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With five strategic breweries in the Philippines, San Miguel Brewery Inc. is the largest beer producer in the country. First founded in 1890 as La Fabrica de Cerveza de San Miguel, San Miguel Brewery has, over 117 years later, grown from a single product produced in a single brewery to a portfolio of eight popular beer brands–San Mig Light, Red Horse Beer, Cerveza Negra, Gold Eagle Beer, San Miguel Strong Ice, San Miguel Super Dry, San Miguel Premium All-Malt Beer, and the flagship brand, San Miguel Pale Pilsen–catering to the different tastes of beer drinkers across all market segments in the Philippines.

With approximately 95% of the market share in 2008 alone, San Miguel Brewery has definitely dominated the market of beer in the country.

In 2009, San Miguel Brewery decided to secure its five plants with IP-Surveillance, and it was i3 Technologies who delivered the solution for them. These five breweries strategically located nationwide are the following: Valenzuela City in Metro Manila, San Fernando City in Pampanga, Mandaue City in Ceby, Bacolod City in Negros Occidental, and Darong Sta Cruz in Davao del Sur. Each of these breweries is equipped with automated facilities capable of packaging the company’s products in a variety of sizes and formats, such as bottles, cans and kegs. Each one is also ISO Certified, and consistently awarded for their efficiency, top-notch workplace standards, and leadership. Together, their total annual production capacity is 15.1 million hectoliters.

To increase the efficiency of their large-scale production, San Miguel Brewery decided to have their plants monitored using IP-Surveillance, which allows them to monitor their production across the country. Using Axis cameras, i3 Technologies delivered the solutions for San Miguel Brewery’s undertaking. Their goal was to centralize their monitoring system so that they can oversee their operations from Pampanga to Davao, right at their headquarters in Manila. This project was completed in 2010, and has been working seamlessly ever since. Should any concerns arise, i3 remains on call so that we can continue to ensure the optimal performance of San Miguel Brewery’s solution.  

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